DCIT 17(2), MUMBAI V. P.D.WAREHOUSING CORPORATION, MUMBAI

ITA 6562/MUM/2010

• Counselvise Citation: 656219914 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 08-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K MEHTA
• Assessee Lawyers: R C JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIB UNAL MUMBAI BENCHES C, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI R.S.PADVEKAR, JM ITA NO.6562/MUM/2010 : ASST. YEAR 2007-2008 THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 17(2) MUMBAI. M/S.P.D.WAREHOUSING CORPORATION GUPTA MILLS ESTATE, DARUKHANA REAY ROAD STATION, MUMBAI 400 010. PAN : AAAFP1508J. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : SHRI N.K.MEHTA RESPONDENT BY : SHRI R.C.JAIN DATE OF HEARING : 25.01.2012 DATE OF PRONOUNCEMENT : 31.01.2012 O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 04.06.2010 IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY EFFECTIVE GROUND IS AGAINST THE DELETIO N OF ADDITION OF INTEREST EXPENDITURE WHICH WAS MADE BY THE ASSESSING OFFICER ON THE GROUND THAT THE BORROWED CAPITAL WAS UTILIZED TO SETTLE THE DUES OF RETIRING PARTNERS AND NOT AS PER SECTION 36(1)(III) OF THE ACT. THE ASSESSING OF FICER, FOLLOWING THE VIEW TAKEN IN EARLIER YEARS, MADE THE DISALLOWANCE U/S 3 6(1)(II) AMOUNTING TO ` 20,87,338. THE LEARNED CIT(A) DELETED THE ADDITION BY RELYING ON THE VIEW TAKEN BY HIM FOR THE ASSESSMENT YEARS 2004-2005, 20 05-2006 AND 2006-2007 INVOLVING IDENTICAL FACTS. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD IT IS OBSERVED THAT THE SAID ISS UE TRAVELED TO THE TRIBUNAL IN EARLIER YEARS. VIDE ITS ORDER DATED 10.10.2010, THE TRIBUNAL FOR ASSESSMENT YEARS 2004-2005 AND 2005-2006 HAS ORDERED FOR THE DELETIO N OF ADDITION MADE BY THE A.O. U/S 36(1)(III). SIMILAR VIEW HAS BEEN REITERAT ED IN THE TRIBUNAL ORDER DATED 26 TH NOVEMBER, 2010 FOR ASSESSMENT YEAR 2006-2007. AS T HE TRIBUNAL HAS ITA NO.6562/MUM/2010 M/S.P.D.WAREHOUSING CORPORATION. 2 CONSISTENTLY DELETED THE ADDITION MADE UNDER IDENTI CAL CIRCUMSTANCES IN THE IMMEDIATELY PRECEDING THREE ASSESSMENT YEARS, WE AR E OF THE CONSIDERED OPINION THAT THERE CAN BE NO JUSTIFICATION TO OBSERVE DEPAR TURE THERE FROM. THE LEARNED DEPARTMENTAL REPRESENTATIVE ALSO FAILED TO POINT OU T ANY DISTINGUISHING FACTS OF THIS YEAR VIS--VIS THE EARLIER YEARS DECIDED BY TH E TRIBUNAL. RESPECTFULLY FOLLOWING THE PRECEDENTS WE UPHOLD THE IMPUGNED ORD ER ON THIS ISSUE. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 31 ST DAY OF JANUARY, 2012. SD/- SD/- (R.S.PADVEKAR) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 31 ST JANUARY, 2012. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A)-XXIX, MUMBAI 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.